RMB Cross-border Payment!!
In the context of continuously warming relations between China and Cambodia, Cambodia officially joined the Cross-border Interbank Payment System (CIPS) on April 18, achieving two-way interoperability with QR code payments. This move means that Cambodia's "de-dollarization" has made further progress.
Nowadays, when using RMB for settlements in trade between China and Cambodia, not only does it improve the clearing efficiency by 30%, but Cambodian companies can also save 2%-3% of the foreign exchange costs. Under the stable exchange rate between RMB and USD, the decrease in Cambodian companies' foreign exchange costs indicates greater benefits from settling in RMB.
According to the official introduction of CIPS, the two-way interoperability of Cambodia with QR code payments promotes "de-dollarization", enabling direct conversion in the payment and settlement systems of the two countries, which will inevitably enhance the efficiency and security of trade settlements between China and Cambodia.
It is reported that as early as 2022, Cambodia had deployed QR code payments such as WeChat Pay and Alipay in 1.8 million merchants, with monthly transaction amounts exceeding $3 million. After joining CIPS, there will be more scenarios for scanning RMB payments in Cambodia.
Known as the "test field" by netizens, Cambodia has also attracted attention from neighboring countries like Laos and Thailand. The convenience of QR code payments not only facilitates the public but also promotes the circulation of RMB within the region, assisting in the internationalization of RMB. It is even called the "mass line" practice of RMB internationalization locally.
Compared with some countries that stubbornly resist the dollar hegemony, refusing to use RMB or join CIPS, and even slander RMB as "predatory," Cambodia's "mass line" practice is more sophisticated.
Source: https://www.toutiao.com/article/1829886261936128/
Disclaimer: The article represents the author's personal views.